disposing of splits

[Haines Brown]

Michael,

Aha, I think I'm catching on a bit. If I understand correctly,
everything is a transaction between accounts, and so I probably need
an "income" account and an "expenses" account.

My checking account is currently of type "expenses," but you suggest
going back to my original "bank" type. I could label it "expenses" and
confine it to monies going out (if I understand correctly). 

Then apparently I should create a second bank type account, which I
could call "income." I would then start recording in it all new income
transactions.

So, when I make a bank deposit, I enter a transaction that put the
money into the income account; when I make out a check, I deduct the
amount from the expenses account. Is this example entirely valid?

You point out that since will have only two accounts, I'll never have
to create a split. But I used to have only one account, but still got
the dialog asking me who makes the split. I trust that if I do as you
suggest, that split dialog will never again pop up.
 
One thing I still don't understand. You suggest that all transactions
(legal ones, anyway ;-) occur between two accounts. That is clear,
but if I call all my various sources of income simply "income," then
I'm not specifying any accounts from which the monies derive. How,
then, can there be a specific transaction? Income in practice just
appears; it does not derive from any account about which I have any
knowledge. 

Haines Brown